Strategy

Significant, profitable growth is the main driver of any investment success. We support our customers in the holding period with strategic growth and value enhancement programs to realize the full potential of a company. With our targeted strategy approaches – from strategy formulation to strategy implementation – we use customized solutions to develop companies in a structured way and to increase their value. We draw on our experience from a large number of consulting mandates and use proven strategic approaches. Our expertise is focused on growth strategy (e.g., geographic expansion, sales channel strategy), portfolio strategy, value creation strategy, and digitization strategy.

Growth strategy

Accelerated and profitable growth is the key driver of value creation. In order to exploit the full potential of a successfully acquired company, a clear picture of the growth strategy being pursued and a consistent focus on the associated value enhancement targets are needed from the outset. Our approach to developing a growth strategy is always tailored and individual, incorporating the strengths of the company in question, the specific market and competitive situation, and customer needs. The basis for this is an analytical, strongly data-driven approach to obtain a comprehensive picture of the current situation and future developments. From this, various growth options are first identified and quantified; the next step is to evaluate and prioritize these options and bring them to a decision. Finally, the selected strategy is operationalized in an action-oriented manner and an implementation plan with concrete measures including a time schedule is developed. Our expertise and project experience lie particularly in the growth areas:

Platform Buy & Build Strategy

Successful Buy and Build concepts are the result of a clear understanding of the goal and focus of the buy and build strategy from the outset: what value will be derived from an  Exit perspective generated with a resulting group of companies in the future, in a given industry, with a given platform company, and through a precisely defined type of acquired companies or Add-ons. Depending on the respective initial situation, whether the development of a buy and build strategy with the search for a suitable capable of consolidation branch. If you want to start a new platform company, develop a suitable buy and build strategy for an existing platform company, or review the value proposition for a buy and build strategy for an existing target image of an acquisition company, we can advise our customers on a successful buy and build strategy.

Internationalization / Geographic expansion / Access to strategic markets

Product and service portfolio expansion

Technology expansion

Development of new fields of application / expansion of the customer industry

Development of new customer segments (quality-price segments, multi-brand strategies)

Go-to-market strategy (new products in existing markets, existing products in new markets)

Sales channel strategy

Acquiring new customers / exploiting the potential of existing customers

Portfolio strategy

The right concept in multi-business companies is crucial for investors such as private equity firms, foundations, holding companies or corporations to secure sustainable return targets. We take into account the individual objectives of the owners, the respective situation of the company as well as external market and competitive conditions to find tailor-made answers on investment priorities, build-up and downsizing of business units and acquisitions or disposals within the framework. We understand how to use our analyses and recommendations to create transparency about the individual business areas and identify any need for action at the overall portfolio level. Our approach combines strategic potential, financial value proposition and ownership advantage to allocate individual business areas in an overall company portfolio.

Value Creation Strategy

Immediately after a successful acquisition, work begins on increasing the value of the company. The focus of active management of portfolio companies during the holding phase is on exploiting sales and earnings growth potential. A value enhancement strategy provides clarity for quick and decisive action right from the start, as to how, on the basis of the underlying valuation together with the value enhancement planned therein and the exit return expected later, the return targets are to be secured by the value enhancement.

Thanks to our in-depth industry expertise with knowledge of the respective industry potentials and our holistic service approach, which already started in the pre-deal phase anticipates the upside potential and the further development of a business model when developing an investment thesis, as well as in the deal phase identifies and quantifies realizable value enhancement potential with the help of the findings from commercial due diligence, we are the right partner for the active management of portfolio companies.

Our approach to developing value enhancement strategies involves meticulously screening the company, its markets, customers and competitors for strategic potential, identifying and prioritizing growth and efficiency levers, and developing roadmaps to leverage the potential.

Our expertise and project experience are in the following key areas:

Development of value enhancement strategies: Comprehensive analysis showing the full potential for value enhancement (revenue growth, cost reduction, cash flow optimization)

Development of 100-day plans: identification and prioritization of measures according to relevance and impact in the initial phase (with urgent immediate measures, initiation of initial projects, further development of ideas from the due diligence process)

Development of value improvement plans on selected initiatives: Development of roll-out plans, responsibilities, timeline, measurement systems on implementation progress and target achievement.

Digitization strategy

The digital transformation is omnipresent and fundamentally influences all business models. A targeted digitization strategy is therefore an essential factor for a company’s growth and competitiveness. We support our customers in tapping their digital potential and develop a growth-oriented digitization strategy or identify potential for optimizing an existing strategy. In doing so, we analyze for our customers how a good digitization strategy can contribute to efficiency, cost savings and better customer experiences.